Thursday, October 7, 2010
It's Simple to Balance The Budget Without Higher Taxes
Politicians and interest groups claim higher taxes are necessary because it would be impossible to cut spending by enough to get rid of red ink. This Center for Freedom and Prosperity video shows that these assertions are nonsense. The budget can be balanced very quickly by simply limiting the annual growth of federal spending.
The Grouch: Politicians don't cut spending simply because they don't want to. It is the major source of their power and influence, and how they reward supporters and constituents in their districts. Even the most ardent deficit hawk changes their tune once under the spell of the Washington establishment. The only realistic way to control spending in DC is to keep taxes low. There is a deficit threshold even the politicians won't exceed for fear of losing reelection. But that limit for the current and previous fiscal years ($1.4T or more) has been greater than I ever would have imagined.